Terms 137-149

Question 1

Accretion

Answer 1

The internal expansion or asset growth of an investment taking into account the discount earned by an investor; added to yearly income

Question 2

Amortization

Answer 2

Prorating of assets for a period of time, taking into consideration the excess or premium paid; deducted from yearly income

Question 3

Married Put

Answer 3

Repurchasing shares of a stock and a put option contract on the same stock on the same day; the IRS allows the cost of the put option to be added to the cost basis of the underlying security

Question 4

Short Sale

Answer 4

Borrowing a security from a broker and selling it with the understanding that it must be bought later and returned to the broker

Question 5

Macroeconomics

Answer 5

Study of the economy using price levels, unemployment, inflation, industrial production, and consumer products

Question 6

Business Cycle

Answer 6

Expansion > Peak > Recession > Through

Question 7

Reserve Requirements

Answer 7

Amount of money that member banks

Question 8

Gross National Income

Answer 8

Sum of all income earned in relation to the gross national product of a country

Question 9

Inflation

Answer 9

A measurable increase in the cost of products and services

Question 10

Reserve Requirements

Answer 10

Amount of money that member banks must keep on deposit with the Federal Reserve Bank

Question 11

Gross National Product

Answer 11

Summ of all income earned in relation to the gross national product of a country

Question 12

Inflation

Answer 12

A measurable increase in the cost of goods and services when demand is greater than supply

Question 13

Consumer Price Index

Answer 13

Measures the rate of inflation or change in the cost of products and services

Question 14

Reserve Requirements

Answer 14

Amount of money that member banks must keep on deposit with the FRB.